Japan’s anti-gambling stance: Costing billions to the country?
Gambling has deep roots in Japan’s history, dating back to the Heian period (794–1185), when games resembling backgammon were popular. Throughout the centuries, various forms of gambling emerged, often operating in legal grey areas.
In 1711, Shogun Ienobu issued an edict prohibiting “gambling of every description,” reflecting societal concerns. Despite such bans, activities like lotteries (takarakuji) persisted, albeit illegally, during the Edo period (1603–1868). The Meiji era (1868–1912) saw the introduction of Western casino games, including poker, as Japan opened its borders.
However, the 1907 Penal Code criminalised most gambling activities, a stance that largely remains today. Despite strict laws, gambling’s allure persisted, with certain forms like pachinko and specific betting activities continuing under regulated exceptions.
Without proper regulation, Japan continues to treat gambling as a criminal activity. However, available data suggests that the ban is costing the country billions in lost revenue.
Illegal gambling thrives
Illegal online gambling has surged in Japan. A recent survey by the National Police Agency (NPA) estimates that approximately 3.37 million Japanese citizens engage in online casino activities, resulting in annual expenditures of about ¥1.24 trillion (approximately €7.6 billion). This figure suggests that a significant portion of the population participates in these illicit activities. Notably, 43.5 percent of respondents were unaware that online casinos are illegal in Japan.
The NPA survey also highlighted that 75.2 percent of users who accessed free online casino sites on their smartphones transitioned to paid versions involving real money. Alarmingly, 59.6 percent of these users acknowledged experiencing gambling addiction, driven by the lure of easy money or the thrill of playing.
The role of celebrity endorsements
The involvement of celebrities in promoting gambling has raised concerns. A recent investigation identified 110 online casinos offering Japanese-language versions, with some utilising celebrities to publicise their sites. This trend has coincided with a notable increase in consultations about online gambling addiction, escalating from eight inquiries in 2019 to 91 in 2024.
Internationally, the gambling industry frequently employs celebrity endorsements to attract customers. Even in Japan, recently two comedians were found to be promoting gambling sites despite a nationwide ban. However, this practice has sparked debates about the ethical implications of such endorsements, particularly concerning their influence on vulnerable populations.
In Japan, authorities have intensified scrutiny of celebrities involved in online gambling activities. Reports indicate that police are investigating public figures and sports personalities for accessing online casinos via mobile devices.
Changing public sentiment & expert views
Public opinion in Japan regarding the legalisation of online gambling remains mixed. Though, a large section of country is engaging in gambling activities, there is lack of widespread public discourse on the topic.
Several experts, such as Joji Kokuryo, General Manager of Bay City Ventures, told Asia Gaming Brief that regulated online casinos in Japan are still very far away. However, the significant participation rate in illegal gambling may prompt discussions among policymakers about potential regulatory responses.
While there have been no major public protests advocating for the legalisation of online gambling, the growing number of users suggests a potential shift in sentiment.
The cost of maintaining the ban
Japan’s refusal to legalise gambling is proving costly. The country is losing potential tax revenue while illicit gambling networks continue to thrive. Additionally, the current approach fails to address gambling addiction, as players are pushed towards unregulated markets where there is no consumer protection.
Experts warn that unless Japan reconsiders its gambling policies, the nation will continue to miss out on billions in revenue, while illegal operators reap the benefits. By introducing a regulated gambling framework, Japan could better control the industry, ensure consumer protection, and capitalize on a lucrative economic opportunity.
